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The majority of solid waste services on Mercer Island are provided through a private hauler licensed by the City. The hauler currently serving Mercer Island is Republic Services. Republic Services collects residential and commercial garbage, and also collects residential recyclables and residential yard waste. Businesses that recycle select their own haulers. In 2014, Republic Services was serving a total of 6,748 residential and commercial customers on Mercer Island.

A new contract for collection of solid waste was approved by the City Council for 2009 to 2016. This contract replaces the former license agreement dating back to 1999. Rates are adjusted each year based on the Seattle-area Consumer Price Index (CPI). The cost of providing solid waste services on Mercer Island is covered entirely through the rates charged by haulers.

Republic Services transports garbage from Mercer Island to the Cedar Hills Regional Landfill. Recyclables are transported to the Rabanco processing facility in Seattle, and yard waste is taken to Cedar Grove Composting near Issaquah.